All Forum Posts by: Katie Huynh

@Dustin Hickey yup, I just added the book in my library. Thanks for suggestion

Like many of you, I play sometime for couple bucks just to buy some luck for fun when the pay out is large. I don't spend more that $10 for a ticket. If you're lucky enough to win lottery, $2 is enough. But strangely I don't wish to win a jackpot, maybe breakeven on my $2 good enough for me. Here why: Hypothetically,if I win the jackpot, all I win is money, but on the other hands, I would lose more than winning. First and foremost, I'd lose the momentum of thriving to success. You may disagree with me here but think about it, if you suddenly sit on a bunch of free money, what motivation would make you keep trying? Statistically, how many winners can keep their wealth and invest it so they don't go broke after 5 years? Of course each individual has different situation and mindset around money and free money is good, but for me, I think if I don't know how to earn it, I would not know how to keep it. So winning lottery is not my dream. Anway, gook luck to any you of who bought the ticket

Originally posted by @Dennis M.:

@Katie Huynh

The deals in Oregon are not going to be especially great from a cashflow perspective. That does not mean they are not out there on the west cIast it’s just going to be a much different return on investment compared to say the Midwest and the appreciatIon factor wIll be hIgher In hot markets . As an example where I live I can get 1500-1800 in rent income on only around 40 grand investment . That probably sounds ridiculous to you but it’s possible in much of the country particularly in c class or d class neighborhoods

I can see that different area would have different expected number. It could be easily to get a single home for under $100k in the midwest probably still in good condition whereas in Northwest area, specifically Portland, housing market increases rapidly. In fact, I have done some analysis around this area. In the last 7-8 years the market value increases approximately 47% and the medium price of a 3/2 property is around $270K whereas the rental price has not gone up much. This is my big concern about investing in a rental property to generate passive income here. Population in Oregon is growing, people are moving from everywhere and they're bringing capital in state and can afford to buy. So I think it makes more sense to fix and flip than investing in rental in northwest region.

@Thomas S. Yes. I'm pretty new in the real estate area and so excited to jump in investing but I'm glad that I reach out and ask for everyone's opinion. I learned quite a lot of things that I don't know. Thanks for you advise!

@Dennis M. So what number would you suggest that would be ideal to be considered? As I know, the rental price in my area is vary depend on the property itself. For example, a 3bd 2bt single family like the one I'm looking at is around $1700_$1800 vs same size brand new condo would be over $2500 and people still accept to rent. The housing development of condo type in my city has been increasing in the last few years. They are strong competitor. What do you suggest? Thanks!

@Austin Youmans Great info! I've learned something new today. Thank you!

@Kevin S. This is a good overview. Thank you for the tips. As I am a newbie. I'm very concern about the property that needs lots of repair. I choose the one that I can do some work on my own. The percentages you mentioned are a good starting point to concern. Thanks a lot !!!

@Austin Youmans Thank you for your advice. I have estimated repair cost $5k since the property looks good, it just needs some cosmetic repair and most of them like paining, gardening,... I plan to do it myself which would save some labor cost. What is the Cap-ex you are mentioning? I'm not familiar with this term yet.? You are right, Portlannd is growing rapidly and it's hard to find a good deal. And if there us one, it's gone really quick if we don't act quickly. Alternatively, I'm looking to shift to Vancourver WA area. Since I see that you are in the area, how is the market wide there? Thanks for the response!

Hello BP Community,

I did a data analysis on this property as for potential rental property. But I'm a newbie and I don't know if my calculation correct and reasonable, so I'm asking for your expertise here if you can help me figure out if it is a good deal.

Info on the property:

This is a 3 beds 2 baths 1,112 sqft property in Portland, OR built in 1979.

It is foreclosed and recently on the market asking for $270K. I was told that never offer the listing price and always go with 80% of it. So hypothetically I'd offer $220K. The house looks still in good shape so I estimate $5K for TLC. Property in this area is worth $1700 - $1800 rent.... so long story short, I ran the number and it shows $201.58 monthly cash flow with 5.97%ROI. I heard that we should not make a deal for rental property if ROI is under 12%. Is it correct? or it's just a preference number?

Also, is my offer insane? How likely that the buyer would accept offer that way below what they're asking for?

Please review the report below and give me some advice.

Thank you!

View report

*This link comes directly from our calculators, based on information input by the member who posted.

@Dan Barli Thank you for the tips. 

I will talk to the lender on Monday to find out how much I can get from HELOC. I assume it's enough to cover the purchased price of $250k for a 3br, 2bd 1230sqft home; expect to spend about $10k for the fix and I have some funds saving for that. Option 2 is to use a conventional mortgage. I am also talking to the lender about this too.

I am not sure yet which option I'm going to use. Just see a potential growth on the property, so I want to take a chance.

I will update when I get a word from the lenders.